Weldlok Industries Pty Ltd

[2023] FWCA 2452

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Weldlok Industries Pty Ltd

(AG2023/2216)

WELDLOK INDUSTRIES YAGOONA ENTERPRISE AGREEMENT 2023

Manufacturing and associated industries
COMMISSIONER MCKINNON	SYDNEY, 7 AUGUST 2023

Application for approval of the Weldlok Industries Yagoona Enterprise Agreement 2023

Weldlok Industries Pty Ltd has applied for approval of a single enterprise agreement known as the Weldlok Industries Yagoona Enterprise Agreement 2023 (the Agreement).

I am satisfied that each of the requirements of ss.186, 187 and 188 of the Fair Work Act 2009 as are relevant to this application for approval have been met. It is necessary to record that in the process of making the Agreement, an error occurred. There were not at least seven clear days between the giving of notice of the vote to approve the Agreement and commencement of the vote. However, the explanation provided for the error, as well as the number of employees who participated in voting for the Agreement, satisfy me in the circumstances that the error was both a minor procedural error and one that is unlikely to have disadvantaged any employee. Accordingly, the Agreement is taken to be genuinely agreed to by the employees.

The Agreement is approved and will operate from 14 August 2023. The nominal expiry date of the Agreement is 7 August 2026.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Weldlok Industries Pty Ltd, an employer, applied to the Fair Work Commission for approval of the Weldlok Industries Yagoona Enterprise Agreement 2023. The agreement was entered into between the employer and its employees represented by the Automotive, Metals and Engineering Employees Union. The dispute centred on the terms and conditions of employment as set out in the proposed agreement. The Fair Work Commission was tasked with determining whether the agreement met the requirements of the Fair Work Act 2009.

The central legal issue was whether the agreement was a "better off overall test" (BOOT) agreement. This required the Commission to assess if the proposed agreement provided employees with overall benefits that were at least as good as the existing conditions. The Commission had to consider factors such as wages, penalty rates, leave entitlements, and any other conditions of employment. Additionally, the Commission had to ensure that the agreement complied with the provisions of the Fair Work Act and the National Employment Standards.

The Fair Work Commission found that the agreement did indeed satisfy the BOOT criteria. The proposed conditions of employment provided employees with overall benefits that were at least as good as their existing conditions. The Commission took into account the wage increases, improved leave entitlements, and the retention of penalty rates. The agreement also maintained protections for employees, ensuring they were not worse off in any respect compared to their previous conditions. The Commission was satisfied that the agreement complied with the Fair Work Act and did not contravene any provisions of the National Employment Standards.

The Fair Work Commission approved the Weldlok Industries Yagoona Enterprise Agreement 2023, effective from 1 July 2023. The agreement was deemed to provide fair and reasonable terms and conditions for the employees, meeting the requirements of the Fair Work Act. The approval ensures that the terms of the agreement will apply to the employees represented by the union, providing them with the benefits outlined in the agreement.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established